Vital signs: California’s unemployment rate remains at 5.1%
California’s unemployment rate remained at 5.1% for the third consecutive month despite the state losing 9,300 nonfarm payroll jobs in September 2026, according to the latest Employment Development Department data.
California lost 9,300 nonfarm jobs in September, but gained 129,300 jobs (0.72%) over the past year. Nationally, nonfarm jobs grew 496,000 (0.31%) over the same period, according to the report.
The number of unemployed Californians fell by 5,400 in September, marking the 10th consecutive monthly decline. Over that period, unemployment fell by 106,500.
Four of California’s 11 industry sectors added jobs in September. Private education & health services led the way, adding 8,000 jobs, including gains in private colleges, universities and professional schools, according to the report.
Moreover, professional and business services added 4,000 jobs, driven by growth in employment services. The industry added about 30% more jobs than is typical for September, according to the report.
Leisure and Hospitality had the largest month-over-month job losses of 9,600 jobs in September. Losses in amusement, gambling and recreation, as well as in restaurants and other eating places, were greater than typically seen for the month, according to the report.
Source: EDD
5.1% — California’s unemployment rate in September 2026
-9.3K — California nonfarm payroll jobs added in August 2026
+129K — number of jobs California added since the beginning of 2026
